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Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

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Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

Last updated: July 31 2021
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  • Re : Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

    Originally posted by SRaj001 View Post
    Mav
    select individuals make very bold calls in this forum with no backing , which is a very usual thing. the market is the market no one can prove or predict.
    Regardless of who is buying in an layout.
    We hear from plenty of end-users who are buying in this area with a vision of building in 3-5 years while we always hear in this forum that this is a speculative area only by folks who have not really even explored or prospected, Time only can tell.
    I am curious to know which is the target segment that is eager to buy and build here in 3-5 years when so many flats, houses, plots nearer to medavakkam/tambaram with better infrastructure and amenities are available at the same cost or maybe 10-20% more. Vandalur Kelambakkam road has minimal IT presence, VIT is not huge..Vandalur-Kelambakkam road is just a long connectivity road..Even if its a strategic location, properties on OMR and GST offers people better bargains near both junctions. When Thoraipakkam-Pallavaram road is lying barren even after velachery and medavakkam seeing so much development. I cant comprehend what end-users see? IMO the Vandalur-Kelambakkam stretch is purely speculative where a relatively lower price point is attracting buyers and brokers alike who want to make some quick profit.

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    • Re : Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

      Originally posted by nabishek View Post
      I am curious to know which is the target segment that is eager to buy and build here in 3-5 years when so many flats, houses, plots nearer to medavakkam/tambaram with better infrastructure and amenities are available at the same cost or maybe 10-20% more. Vandalur Kelambakkam road has minimal IT presence, VIT is not huge..Vandalur-Kelambakkam road is just a long connectivity road..Even if its a strategic location, properties on OMR and GST offers people better bargains near both junctions. When Thoraipakkam-Pallavaram road is lying barren even after velachery and medavakkam seeing so much development. I cant comprehend what end-users see? IMO the Vandalur-Kelambakkam stretch is purely speculative where a relatively lower price point is attracting buyers and brokers alike who want to make some quick profit.
      I know some awaiting endusers who works in mid income IT related jobs like support, facilities etc...who works in siruseri & nearby areas and some guys doing mid size business around medavakkam,pallikaranai areas. I think they all bought when the prices were <= 20L-25L. And now it is the best option to build their own home once the area picks up. And also I know some cases where the young bachelor IT guys bought jointly a ground and share half each. They plan to build duplex houses in 1200sqft. This is a good option as well comparing to 70L - 80L duplex house in medavakkam. If you visit this area on any weekend definitely you can notice some guys here and there visiting their respective plots, if you talk to them you will know the pulse. Again I reiterate that no one can hype market through forums like this. Forums are surrounded by minimal set of repeated members, but the real market has all sort of humans.

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      • Re : Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

        Originally posted by SRaj001 View Post
        Mav
        select individuals make very bold calls in this forum with no backing , which is a very usual thing. the market is the market no one can prove or predict.
        Regardless of who is buying in an layout.
        We hear from plenty of end-users who are buying in this area with a vision of building in 3-5 years while we always hear in this forum that this is a speculative area only by folks who have not really even explored or prospected, Time only can tell.
        I view the vision of building something in this layout in 3-5 years as far fetched as someone who is betting in 10 years it will not happen. Former is a hope of a buyer who is planning on constructing something dependent on a big IF (infra should begin to show). With out supporting infra and allied services to address the essential need, end-user wish has no meaning. I do not subscribe to or see much basis in the view that layout having owners with end-user intention will see quicker development. Once infra comes in, lot of things will happen. Development as a trigger can even convert an investor do a JV to cash out better. End-user and investor intentions are quite correlated in many ways.

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        • Re : Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

          Originally posted by nabishek View Post
          I am curious to know which is the target segment that is eager to buy and build here in 3-5 years when so many flats, houses, plots nearer to medavakkam/tambaram with better infrastructure and amenities are available at the same cost or maybe 10-20% more. Vandalur Kelambakkam road has minimal IT presence, VIT is not huge..Vandalur-Kelambakkam road is just a long connectivity road..Even if its a strategic location, properties on OMR and GST offers people better bargains near both junctions. When Thoraipakkam-Pallavaram road is lying barren even after velachery and medavakkam seeing so much development. I cant comprehend what end-users see? IMO the Vandalur-Kelambakkam stretch is purely speculative where a relatively lower price point is attracting buyers and brokers alike who want to make some quick profit.
          I will clarify , as i said in my statement it can be 3-5, 5-7 or 7-10 years , regardless what it is going to be if you see it today its all speculation, only time will tell the trajectory of development.
          Next, Who is looking to build ?
          A variety of folks that i know from IT who have bought plots of sizes 1500, 1800 , 2400 and 1200 sqft with entry prices at 500 to 1300rs a sq ft who i have interacted with in and outside of forum.
          Most buyers as said by KK in this category have bought land at a target budget of 18 to 36L range, some on SBI / HDFC / LIC and Axis loans.

          The SBI loan is a tricky one in that if you dont build any thing in your property in 2 years or 5 years ( i forget , i have never done plot loans),but then try to resell you can be levied commercial rate of interest for loan payoff. I have told many buyers to be extremely careful of this factor.
          If you are an investor most dont go into that loans, thats one indicator , granted its a mild indicator.

          Also majority of the ones i have interacted have bought plots "here and here only", its not a diversification strategy but more of " my only owned plot " strategy, kind of scary to me, but it is prevalent.

          When you combine what you hear from such buyers who are spread across many of the layouts in this area, you get a feel they are on sidelines for some one to bell the cat.

          Infra coming first is a pipe dream IMHO, so some promoter has to start the activity, Jones / Casa/ Artha are doing that and time will tell how much can that propel the momentum.

          Infra will only follow like the case with many other layouts, M-M road expansion can be a catalyst.
          Last edited July 3 2014, 04:47 PM.

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          • Re : Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

            Originally posted by maverick007 View Post
            I view the vision of building something in this layout in 3-5 years as far fetched as someone who is betting in 10 years it will not happen. Former is a hope of a buyer who is planning on constructing something dependent on a big IF (infra should begin to show). With out supporting infra and allied services to address the essential need, end-user wish has no meaning. I do not subscribe to or see much basis in the view that layout having owners with end-user intention will see quicker development. Once infra comes in, lot of things will happen. Development as a trigger can even convert an investor do a JV to cash out better. End-user and investor intentions are quite correlated in many ways.
            @mav , no one can ever determine the enduser to investor ratio in a layout before its built-out , how do you do that ? is there any public records or formula ? No

            Without any credible information, every thing is speculation , you told me, my friend told this, my friend's friend bought here, my broker sold to 3 more IT guys, all these are pure word of mouth speculation. I actually subscribe to such information but dont get overly enthusiastic about the information.

            I agree vast majority wont build without seeing infra and allied services - so what are we talking about
            • -- Main roads connecting and leading to locality
              -- Easy access into layouts from main road
              -- Well formed roads within layout
              -- Reasonable commute to work ?
              -- Reasonable commute for kids to school
              -- Social community for kids and families to live around (***)
              -- EB connectivity
              -- Water supply - ground / public
              -- Septic / Sewer
              -- Schools - nearby
              -- Medical shop / grocery shop / convenience shops
              -- Public transport - Bus / Share auto
              -- Temple
              -- Flower shops / Fruit vandis


            Sorry not lived in india for while so cannot think of any more,

            But if you look at the list above, except for main arterial roads none in the list will "automagically" show up if i dont have a population to support or base it on.

            Im not going to open a temple nor a medical shop when no one is around me.
            IMO the key is, Who is ready to bell the cat ?

            It it will happen at a point of time when the options of flats / plots and nearby developments dont make financial sense than building in these barren layouts, when that pivot occurs, some one will bell the cat and the herd will follow - until such time its a waiting game ....

            From what i have observed in other layouts, this is my feeling, now there are other factors such as Corp limits expansion due to which getting roads etc that speed up development but i dont think it applies to the area under discussion.
            Last edited July 3 2014, 04:59 PM.

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            • Re : Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

              End use construction and infra development seems like a chicken and egg problem. Historically, infra development has followed after a locality had a critical mass of occupants. I feel the IT crowd, especially, wants it the other way round. This may be a reason why IT dominated layouts in the suburbs haven't seen much enduse.
              In the 80s, 90s, people moved into god forsaken areas and put up with lot of hardship. Now, outlook has changed and people are willing to wait while staying at rented house or own falats in areas with at least basic amenities.
              The question remains as to what would break the deadlock. TNHB shols should have seen lot more end use construction than what exists today given its proximity to many companies and good access. It seems like a value trap at this point.
              Does anyone know of such value traps in the past and how they eventually got unlocked?

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              • Re : Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

                My point is lot of plot owners ready to build applies to all layouts. Investor/End-user ratio is immaterial. I saw few posts claiming the readiness of owner willing to build as soon as infra comes in - common across all layouts. Readiness do not count. One does not have to be a end-user to build and if the infra falls in place, buildings sprout. So, the readiness to build does not aid in quicker development of neighborhood is the point I was trying to drive at.

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                • Re : Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

                  How many people here have concrete plans of building.
                  I mean people who talked to masons, construction contractors, drawn up plans, bought materials, etc.

                  Everyone wants to build one day.
                  But when is that one day going to come - 6 months, 2 years, 5 years, 10 years+. It might never come for many.

                  I agree, ready to build when infra comes in does not count. That is most obvious.
                  Commerical shops and services do not sprout up without people. As @nilanadukkam put it out chicken and egg.
                  Infra and support will mostly come after people move in. So people cannot use that as the reason.
                  It seems people have taken, gated community nearby as the comforting factor and be the biggest selling/buying point for the place.

                  If one of the forum member builds a house here, it will make it more interesting for others.
                  If they decide to move in there, that would be even bigger.

                  Let us know if you guys are doing it.
                  Last edited July 4 2014, 12:48 AM.

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                  • Re : Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

                    Originally posted by maverick007 View Post
                    My point is lot of plot owners ready to build applies to all layouts. Investor/End-user ratio is immaterial. I saw few posts claiming the readiness of owner willing to build as soon as infra comes in - common across all layouts. Readiness do not count. One does not have to be a end-user to build and if the infra falls in place, buildings sprout. So, the readiness to build does not aid in quicker development of neighborhood is the point I was trying to drive at.
                    True to some extend but not entirely
                    Lets take some examples and address @nilanadukkam question.
                    one layout where i have investment is the VGP layout in Injambakkam, its one of the few layouts in that stretch that has approved plots and over 500m ( VGP uthandi, kapaleeswarar nagar nkrai are some others)
                    Even if you drop the ECR factor many layouts in this stretch even upto akkarai and uthandi all the way to toll gate are very well populated , includes unapproved panayur modern builder layout as well
                    But the VGP layout in injambakkam very sparsely populated, roads are tar , infra is there, main road , schools , shopping, you name it you have it.
                    Most investors are NRIs , most bought from VGP and most parcels are 2-3 ground parcels.
                    Valuations rose very fast and plots are selling at 1.25 to 1.5 some even over a ground.
                    Enduse buyers are struggling to enter unless the plots are subdivided.
                    this is a good example where the layout has every thing going but lack of END-USE buyers is stalling the build out..
                    If this is a flat worthy area /layout , the story will be different because the builders would have crowded all the 2-3 ground parcels but since FSI and approvals are an issue its not happening here.
                    Thats the only explanation i can think of.
                    Thoughts ?
                    Last edited July 4 2014, 04:23 AM.

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                    • Re : Plots / Land in Ponmar - Medavakkam -Mambakkam Road, Chennai

                      ECR Is an exception than norm. Not sure if we can analyze ECR to get answers regarding end use due to CRZ, FSI reasons that you mentioned. It is seen as a luxury belt.
                      Let's turn to OMR, Ponmar, VK Road. I have relatives who bought in Vijayashanti's project on VK road. Occupancy rate is quite low. Around 100 families have moved so far out of more than 500 houses. This is inspite of basic infra being ready and good access to IT belts and shuttle service to the city. So the "flat worthiness" theory doesn't seem to be working in this case. Unitech villas occupancy is less. Ponmar is a well known story, I don't have much to add. Even OMR, beyond shols junction, has low end use. There are these high rise pockets, but still, occupancy is much lower.
                      Perhaps, it is the Cash rich folks buying and holding with no end use intent. Due to this, even those with end use intent hesitate as it takes quite a while to reach the critical mass. Many IT folks that I know of, buy and move abroad with an intent of end use after they come back.

                      In a nutshell, my hypothesis is that demographics to a large extent determine end use. The IT/NRI belts are typically low end use and may not be suitable for near term end use. Now, let's hear evidences for and against the hypothesis.

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